Paid 95% of My Taxes—So Why Did the IRS Penalize Me for Estimated Taxes?

Why did the IRS charge an underpayment of estimated tax penalty even though this taxpayer paid 95% of their 2025 tax bill by January 15, 2026?The problem is that estimated taxes generally aren’t judged only by how much you’ve paid by the end of the year. When you made those payments can matter too.In this video, I explain why making a large estimated tax payment late in the year may not eliminate penalties from earlier quarters, how the estimated tax safe harbors work, and when IRS Form 2210 and the annualized income installment method may help taxpayers whose income wasn’t earned evenly throughout the year.I cover:Why paying 90%+ of your tax doesn’t automatically eliminate an estimated tax penaltyHow the IRS looks at estimated payments throughout the yearWhat happens when you make most of your payment in Q4When uneven or seasonal income can change the calculationHow Form 2210 can potentially reduce or eliminate an underpayment penaltyWhy taxpayers with back-loaded income may be treated differentlyIf you received an IRS penalty for underpaying estimated taxes, the key question may not simply be how much you paid—but when you paid it.#IRS #EstimatedTaxes #TaxPenalty #Form2210 #Taxes #TaxHelp #IRSHelp